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Info Service on Finance and Development (Nov26/02) By Maria Syed In a global financial system frequently criticised for perpetuating deep-seated imbalances, the launch of the UN Borrowers’ Platform arrives as a potentially pivotal, yet cautiously viewed, development. The first governing meeting was held on 12 October 2026, on the sidelines of the annual meetings of the International Monetary Fund (IMF) and the World Bank in Bangkok. The platform has engaged 31 countries on board officially, with major representation from Africa. An initial working group made up of Egypt (chair), Pakistan (vice-chair), Colombia, Honduras, Maldives, Nepal and Zambia had developed draft modalities outlining the platform’s objectives, governance and participation. The establishment of the Borrowers’ Platform gained momentum through recent intergovernmental processes convened largely by the UN Conference on Trade and Development (UNCTAD). In June 2025, the UN Secretary-General’s Expert Group on Debt identified the creation of such a platform as one of its 11 recommendations. This proposal was subsequently reflected in the Seville Commitment adopted by member states at the Fourth International Conference on Financing for Development (FFD4) in July 2025. In this regard, paragraph 48(i) calls for the “establishment of a platform for borrower countries to facilitate technical discussions, exchange information and experiences, enhance access to technical assistance and capacity-building, promote coordination of approaches, and strengthen their collective voice in the global debt architecture.” This commitment was reinforced by the Geneva Consensus, adopted by member states at the sixteenth session of UNCTAD in October 2025. Paragraph 80.65 mandates UNCTAD to facilitate the exchange of experiences and technical discussions among borrower countries, with a view to amplifying their voice, fostering cooperation and strengthening debt management practices. UNCTAD has a decades-long history of facilitating the priority of developing countries to establish an orderly global debt restructuring mechanism under the auspices of the United Nations. A Complement, Not a Replacement: Understanding the Mandate It is crucial to clarify the precisely crafted mandate of the UN Borrowers’ Platform. As outlined in its inaugural session, the platform is designed to complement existing international debt mechanisms, rather than replace them. It is explicitly not a forum for collective debt restructuring or collective bargaining. The platform’s core objective is to promote peer learning and technical assistance among borrowing countries, facilitating the exchange of experiences, capturing case studies, and building a knowledge base to strengthen their capacity. Its focus on institutional, technical, and advocacy pillars aims to improve access to knowledge and data, and to strengthen the collective participation of borrower countries in international debt discussions. Addressing a Historical Vacuum: A Seat at the Table Historically, the global debt architecture has been explicitly creditor-driven, with existing coordination and negotiation mechanisms predominantly reflecting the interests and perspectives of lenders. This has left a significant vacuum, with no permanent borrower-led space for genuine knowledge exchange and collective voice. Hence, the platform itself becomes a harbinger of technical negotiations being an important part of this mechanism. Moreover, as a long-term approach, it can address important questions that relate to specific challenges around domestic debt, the lessons countries can share on developing domestic bond markets, and the common challenges around bondholders and domestic investors. The UN Borrowers’ Platform emerges as a direct response to this asymmetric design of voice and agency. It offers a much-needed forum where countries like Egypt, leading the platform, and Pakistan, co-steering, can lead a platform for debtor coordination. The Civil Society Statement articulated this need, calling the Platform “a historic step towards shifting from a creditor-centred system to a more democratic, borrower-led approach grounded in international law.” As UN Secretary-General Antonio Guterres noted, by establishing this platform, borrowing nations are finally “taking a seat at the table.” However, merely securing a seat does not guarantee a shift in power dynamics, especially if the fundamental rules of the game remain dictated by dominant creditor institutions and their priorities. The challenge will be to truly influence and rewrite the agenda. The Systemic Trap: When Interest Outpaces Revenue, and Solutions Lag One of the most pressing issues underscored by the discussions is the alarming reality that interest costs in developing countries have risen much faster than government revenues over the past decade. This trend is a symptom of systemic inequities and vulnerabilities within the international monetary system, exacerbated by deregulated capital flows and the “original sin” of borrowing predominantly in foreign currencies while earning in local currencies. The shift towards domestic debt, now comprising 81% of general government debt in developing countries, has not alleviated the pressure, as these nations often pay a premium of 3 percentage points compared with developed economies. This dynamic leads to higher debt-servicing burdens that inevitably crowd out essential public spending in the critical development sectors of health, education, climate resilience, and social protection. Countries like Zambia facing national debt and high costs, and small island developing states (SIDS) like Maldives which need to borrow funds in order to adapt to climate change, highlighted in the forum how these financial realities directly impact everyday lives. While the platform aims to strengthen borrowing countries’ capacity to navigate these realities, a critical question remains: How can enhanced national capacity generate progressive momentum to effect the more structural reforms required to address the inequities embedded in an international financial system that consistently disadvantages developing countries? This question is particularly salient in the ongoing discussions on how multiple formulations of debt swaps, including their modalities and designs, can play a positive role in facilitating debt restructuring in the context of just transitions. From Dialogue to Action: Promising Intentions, Persistent Hurdles The First Governing Open Council Session in Bangkok articulated several practical steps, yet each came with its own set of critical questions regarding implementation and impact. The following are some of the key steps proposed: Strengthening Debt Assessment: Proposals include moving beyond sole reliance on Debt Sustainability Analysis (DSA) to explore complementary approaches like Debt Repayment Assessments (DRA) and strengthening national ownership of these evaluations. A core challenge of such a DRA may involve how its implementation will gain traction and acceptance in the context of the established, creditor-centric methodologies of the IMF and World Bank, where restructuring processes are often tied to macroeconomic policy conditionality. Enhancing Technical Capacity: Establishing a knowledge repository and fostering peer-to-peer exchange are valuable. One challenge lies in how knowledge sharing, even on complex issues like negotiating debt contracts and DSAs, can counter the disproportionate technical and legal resources of major creditors. Promoting Transparency and Borrower Protection: Discussions highlighted the inadequacy of existing mechanisms and the need for a space to discuss debt through a different analytical lens which means more regional dimensions to be explored. Hence, it raises a question of whether a mere “space for discussion” fundamentally alters the power dynamics in negotiations, especially when transparency for whom, and for what purpose, remains a contentious issue. Exploring Alternative Financing: Local-currency borrowing, joint financing arrangements, and debt-for-climate initiatives can be explored as important steps towards how much multilateralism can expand these initiatives and support the debtor countries in their fight for setting the lending principles. In financial markets dominated by foreign-currency transactions, a key question will involve how risk perceptions and legal complexities will be managed without official collective guarantees. The African Perspective: The African Union’s emphasis on a common approach and collective bargaining advantage is a strong ambition. Despite historical challenges posed to creating forums and bodies of regional unity, there is a palpable sense of hope that sustained and coordinated regional governance from the continent can generate a parallel movement in global economic governance reform. The discussions have also pointed to the stigma and political risks associated with participation, which can deter countries from joining, fearing bilateral pressure or legal challenges. This highlights a crucial, and often overlooked, hurdle: even with the platform in place, the implicit threats within the existing system can undermine its inclusivity and effectiveness, demanding a more robust protection mechanism than currently envisioned. Another challenge at play is to engage developing countries which are in debt distress and highly climate-vulnerable. A Necessary Step, But Not the Final Destination Several questions persist on debt governance and the role of the Borrowers’ Platform. Will the platform transcend its role as a mere discussion forum to genuinely influence the rules of the global financial game? Can it empower borrowing countries to not just manage debt, but to fundamentally challenge the systemic structures that create it? And will the collective will of member states be strong enough to overcome the inherent power imbalances and political risks that still loom large? The UN Borrowers’ Platform, while not a panacea, represents a necessary, albeit cautious, step forward. It is a testament to the growing recognition that fragmented, creditor-centric approaches to debt are unsustainable. By fostering collective capacity, shared learning, and a potentially stronger, unified voice, it lays groundwork for future advancements.+
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